EVG 2.94% 3.5¢ evion group nl

Hi BB,I am wondering why people are interested in buying EVGOA...

  1. JID
    3,568 Posts.
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    Hi BB,

    I am wondering why people are interested in buying EVGOA Options at 1.4c now when they will expire in Dec-09.

    The obvious answer is that if you buy 2 x Dec-09 Options then you will qualify to buy 1 new Dec-11 Option for 0.1c.

    This means that the 1 new Dec-11 Option will have cost you 2.9c (ie 1.4c x 2 + 0.1c).

    Thus, when every other shareholder is issued their 0.1c Options and they start trading in the New Year, the new Options would have to trade at >2.9c before the Dec-09 Option buyers are ahead.

    The big question is will the Dec-11 Options initially trade at greater than 2.9c?

    My suggestion is probably not as they are currently out-of-the-money and there will be many Dec-11 Options that will change hands immediately for quick stag profits.

    Instead of buying EVGOA in an effort to get access to the Dec-11 Option I would suggest it be better to hold off and buy on market, or just buy the heads now.

    I could be wrong...

    Cheers
    John
 
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Last
3.5¢
Change
0.001(2.94%)
Mkt cap ! $7.980M
Open High Low Value Volume
3.4¢ 3.5¢ 3.4¢ $8.606K 252.1K

Buyers (Bids)

No. Vol. Price($)
2 161828 3.4¢
 

Sellers (Offers)

Price($) Vol. No.
3.5¢ 174648 4
Last trade - 16.10pm 12/11/2024 (20 minute delay) ?
EVG (ASX) Chart
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